CPF Minimum Sum
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Big Kahuna
Senior Member
Somebody mentioned CPF is paying 2.5% is not telling the full story, you already have 4% "guaranteed" on the first $60k...tell me how many investment company (in SG, don't quote Msia) can match that at consistent level 
Big Kahuna
Senior Member
Case 1: Currently cannot take cpf, clear plates and cups in food court. See money in cpf statement every month. Don't know want to cry or not.
Case2. Withdraw cpf, buys things and enjoy life, someone here says go Batam at today's price, full value for money. Money finish, clear plates and cup food court.
Both end up the same place. I choose case 2 anytime.
Somebody mentioned CPF is paying 2.5% is not telling the full story, you already have 4% "guaranteed" on the first $60k...tell me how many investment company (in SG, don't quote Msia) can match that at consistent level
It is indeed not telling the full story. What is so good about the 4% on first 60k?
Go back to the first posting of this threas and there is a table that shows minimum sum and adjustment. 2003 minimum sum $80,000. Minimum sum is supposed to be 80k and every year adjusted for inflation.
So today 2014, minimum sum is 155k buys the same amount goods and services as the 80k can buy in 2003.
The difference is inflation and using Simple average the calculation looks like this.
(155,000-80,000)/80,000 = 93.79% over 11 years This works out to about 8.5% per year! and you are getting only 2.5%. is that not ridiculous!
Someone with 80000 in year 2003 (minimum sum) that money would have become 155000 today (minimum sum equvalent). At 2.5% interest his account will show about 105,000. Effectively he has been robbed off 50K over 11 years.
$150k should not be a sum that is a concern. One should have much more savings than that if you're going to live reasonably ok in this country.
$150k over 20 years is only good for $1000 pm. Good luck to whoever who plans on surviving on this number 10-20 from now.
If $150k is your only or bulk of your life savings, you should be thankful for the idea of a minimum sum.
$150k over 20 years is only good for $1000 pm. Good luck to whoever who plans on surviving on this number 10-20 from now.
If $150k is your only or bulk of your life savings, you should be thankful for the idea of a minimum sum.
Big Kahuna
Senior Member
Big Kahuna
Senior Member
Where got ridiculous? If you put your money in Citiibank premium savings account, you got even lesser, isn't that more ridiculous?
My point is you are comparing Cpf to a commercial investment vehicle, one targeting the mass and one targeting the wealthy, you are not comparing apple to Apple. When I say 2.5% is not low for interest rate! you divert to inflation which any econs grade could write you10 pages of analysis and trend, like that you might as well factor in 3rd and 4th world war which for sure gold will tripled in current price and everyone better stock up now
Big Kahuna
Senior Member
End up I have subsidize people like you that's why I strongly against any earlier withdrawal
End up I have subsidize people like you that's why I strongly against any earlier withdrawal
Agree. 👍
Also there is no difference between a gov that squanders the CPF vs one that bankrupts the country, one capable of one is capable of the other and either way the money is useless.
sammy888
Senior Member
See how may "I" you used in your article? If you are right then that's good for you, imagine if you fail in your judgement? Whose problem it became?
I use "I" because I am not sure how many others are like me or like them or like you or like whatever. So I use myself as the only way to show my perspective. That is how I argue things. I try to be realistic and not pull figures and emotional sentiments out of my butt to win a point as much as possible. Everything said here by those opposing sound very emotional than actually putting out any real proven figures. As long as all you got ot say is base on hearsay or guessing your arguement is no better than me mentioning "I" though you don't say it.
There is no prize for winning any argument here in this forum and possible for us to change the law itself (TKK) .. sadly. Including not being told exactly what's the story on where our money is being used, bu who, how much of it and other financial figures. Yes I think I am prepared for my future but that should not stop me from doing more than for myself if that might be worth fighting for as opposed to sitting on the sideline and just take things at FACE VALUE and let others suffer. For all you know as safe as you and I think we are, we might not be after all. especially if we take things at FACE VALUE all the time.
But should that mean we all bend over and take it and be led like lamb ( to a slaughter ) without knowing. If anything you can learn from history that is that nothing good or bad last forever, nothing is always as it seem sometime, human nature and it's power of corruption or of truth, how the very reasaons for doing the common good can actually have somethig bad happen instead ...etc.
Don't you think it is has been a little too long we got snubbe and not told anything for a little too long. As I said.. Trust BUT Verify. This is not to say I don't trust the authorities but then what's the harm in telling us a bit more about the inner workings of the system. If someone borrow money from you or you suspect your spouse to be in an affair and seldom am home early and hardly pay attention to you and each time you ask they say not now don;t bother me, trust me nothing is going on but keep stopping short of tell you where that time is spent or borrower can't pay you due to some reason and tell you to trust them but can not say more... and this keep going on for a week then a month then a year and longer. You sure you are not going to suspecting anything more or you keep giving chances? Well how long has CPF scheme been around??? We are still waiting for a clearer answer on what the money is really used for. Do we need to wait for another truly great president to be elected to try to pressure them to revive the truth again instead of sitting back and get paid to be a millionaire?
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sammy888
Senior Member
And you think that is not already happening with the CPF system intact as it is?
Do you go around taking street photography? You will be surprised with what you see happening NOW in singapore as go about shooting.
There are people walking about with no money or lack of it and life is still going on., You don't see them organising rally or protest at ministries to get their help or throw them some money. Survival instinct is a very powerful thing especially in Asia. We are not like western countries with decades long dole system that pamper their people so much that they have become totally weak and dependent on the govt. (Go youtube to see some of the documentaries like Benefit Britain life on the dole) . Eg. http://youtu.be/OxgW01fyVGU They will rally and riot if need be to get their govt to help them. But we are far from being like them as we never had the luxury of a handout like them. Ever. Asian mostly know what hard life is about though I can not say the same for the younger generation but even then And even if we have people like that.. how high a percentage you think that would be REALLY??! You don't seem to give your own nation's people enough credit like some people in governing system sad to say.
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sammy888
Senior Member
End up I have subsidize people like you that's why I strongly against any earlier withdrawal
Since when you heard we have to subside for the poor or those who don't want to work for their money or lost all their money? Or you are just theorise that will be the case? If you are.. what makes you think the authorised will not still come up with that rule WHILE at the same time still happily moving the CPF goal posts further away as they have already been doing historically. It can happen you know. Why? Diminishing children born.. which means less CPF contributors in the future for one theory I can think of.
Let me play devil's advocate.... most here seem to argue this USING the present day known scenarios.... try to extrapolate this into the far future. every possible thing you are saying could be set to mute if the policy gets more drastic and again they don't have to explain it to you. Then how? It is the present and past action i see that scares me too much about what could possibly happen in our future.
So be like me... Don't always sleep with both eyes shut tight.
sammy888
Senior Member
Thus we should handle our own money and not leave it with them then heh
Missing the point.
When a gov bankrupts the country, the currency, your money, is no longer worth anything. The focus should be on the gov and not the CPF.
Big Kahuna
Senior Member
You are slaping your self, of course we are all guessing when talking about future....otherwise we will sit in an altar and not CS Kopitiam....you too are emotional by saying other people emotional....and Just because you do not need doesn't mean the other 3 million peoples should follow suit....since you dislike the system so much....you do have a choice not contributing to CPF.....then your problem is resolved isn't it? You can then keep all your money under your pillow and invest in whatever you think better....shoot more street photos and none of other people business
Kit
Senior Member
If a person don't live to the minimum age, then no, he/she won't get the money.
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